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Costco Auto Buying Pro Review (Former Car Dealer)

Costco is one of the largest membership clubs in the world. With an estimated 100 million members worldwide, there are certainly some great perks to being a part of the wholesale club. Beyond bulk groceries and home-goods, Costco offers their members access to the Costco Auto Pro to assist them with one of the most daunting tasks they face; buying a new car.

The Costco Auto Pro serves hundreds of thousands of car buyers each year, and today we thought we would take some time to break down how the program works, if it’s a good value, how dealers are compensated, and more.

If you’re more interested in watching, be sure to click “play” on the video above. Without further ado, let’s dive in!

How does the Costco Auto Pro work?

Let’s start by being brutally honest about what the Costco Auto Pro is … It’s a lead generation service for participating car dealers. Not too dissimilar from services like TrueCar, Costco’s auto buying program has a network of participating car dealerships that pay a monthly fee to get access to leads from Costco. The program is actually not run by Costco at all, instead it is operated by Affinity Auto Pro, Inc, a company that specializes in creating buying experiences for different brands (i.e. Navy Federal Credit Union, and Costco, etc.).

In return for paying to be a part of the program, these dealers gain access to the leads that Costco is able to generate from their millions of members.

At its core, the Costco Auto Buying Pro is a matchmaking service that dealers pay to get access to. Plainly, if you’re looking for the best possible car deal, you shouldn’t expect it from the Costco Auto Pro.

Does the Costco Auto Pro work for new and used cars?

Yes, the Costco Auto Buying Pro supports both new and used vehicles. As a shopper you can use the online portal created by Affinity Auto Pro, Inc. to search for new or used inventory in your area. Once you have found something you are interested in you can then submit your lead and Costco will “handle the rest for you.”

Is the Costco Auto Pro a good deal?

You get time savings and reduced headache because the prices are not negotiable, but you also are limited to the dealers that are in the program’s network. When using the Costco Auto Pro there is certainly a tradeoff in selection and price.

Since vehicles in the Costco Auto Pro are not negotiable, you won’t have a chance to get further discounts on a car, truck, or SUV, even if the dealer would be willing to go lower. For some, that’s a-okay, because they simply want a car buying experience that doesn’t include haggling or negotiating. However if that’s the case, I’d recommend you go to a one price car dealership in your area that is not a part of the Costco Auto Buying Pro and see what price they are able to quote you. They may be able to go lower since they are not paying a monthly fee to be a part of the Costco program.

How we like to use the Costco Auto Pro

Getting a price quote from a dealership via the Costco Auto Pro is easy. What we recommend you do is you get the price quote from a participating dealer, then take that price to a dealer that is not in the program and tell them you’ll pay $500 less. The dealer will take your offer, and you just saved an extra $500. It’s really that simple.

Costco Auto savings are different then the Auto Buying Pro

Unlike the Costco Auto Buying Pro, where you must purchase your vehicle from a participating dealer, Costco Auto Savings are applicable to any Costco member regardless of where they shop.

As of the time of writing this, Costco has $1,000 savings incentives for their members at Buick, Chevrolet, GMC, and Volvo dealerships. If you are a Costco member this means that those dealerships will happily provide you with the incentive that Costco is offering. The incentive doesn’t come out of their pocket, so they will be happy to apply it to your deal, just ask.

To keep up to date with the latest savings options for Costco members, click here: https://www.costcoauto.com/save/

Always negotiate ancillary products

Just because the selling price of the vehicle is not negotiable doesn’t mean you shouldn’t negotiate on ancillary products. Extended warranties, tire and wheel protection, GAP insurance, etc, etc. All of those things should still be negotiated.

Simple because the vehicle was not negotiable does not mean that the dealership will not try to make a pretty penny in the back office selling financing and insurance products. If you want to finance through the dealer or buy warranties that’s a-okay, just know that if it’s taxable, it’s negotiable.

Pro: Here’s what I like about Costco Auto Pro

  • Ease of mind. You know what you are getting with the Costco Auto Pro, and when it comes to buying a car, that usually isn’t the case.
  • Savings for Costco members can be applied regardless of if you use the program to buy your car or not. We love that Costco specific savings can be applied regardless of where you buy your vehicle (through their program or not). Be sure to take advantage of these savings if you’re a Costco member.
  • They’re honest. Costco isn’t hiding what their program is, you can read about it right on their website. I like the fact that they are open and honest about what the Costco Auto Buying Pro is, and what it isn’t.

Cons: Here’s what I dislike about Costco Auto Pro

  • Limited selection. If you are dead set on purchasing your next vehicle through the Costco Auto Pro you have to understand that you may not find the exact vehicle you are looking for from one of the participating car dealerships.
  • Not the best price. As we discussed above, the Costco Auto Pro does not guarantee you the best possible car deal.
  • A lot of emails from participating dealers. When you become a “lead” through the Costco Auto Pro you will inevitably receive a lot of emails from participating car dealers.

FREE Car Buying Help Is Here!

Car buying cheat sheet

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Buy a Car Online With These Email Templates (Copy & Paste)

Buy a Car Online With These Email Templates (Copy & Paste)

Buying a car shouldn’t be so damn hard. Since the pandemic, more and more car dealerships have started offering ways for you to buy a car online. That being said, negotiating a fair car deal is (in some ways) easier than ever before.

To buy a car online you need to be prepared to contact multiple car dealers via email. We wrote an entire guide on this process. The purpose of this page is not to talk strategy, but rather to be a repository of email templates you can copy and paste while you buy a car online.

Please comment below if you have an email template request and we’ll add it to this page. Our hope is that you can copy and paste these email templates so that your online car buying experience is easier, less stressful, and potentially even fun (we said potentially).

Email Requesting the Best out the Door Price Quote

Email For When the Dealer Says “The Price is The Price”

Email Asking If a Car Is Still Available

This email should be sent to the sales department as a general inquiry, or to the internet department if a dealership has one. You can typically find the email address for these departments on the dealership’s website.

Email Asking For a Lease Quote

Email To Factory Order a New Car

Email for the General Manager or Dealer Principal

Email Response for When The Dealer Doesn’t provide the Info You Requested

More Free Car Buying Help

Car buying cheat sheet

Ready to outsmart the dealerships? Download your 100% free car buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!

Car Trade in Tactics for Success

Car Trade in Tactics for Success

As if buying a car wasn’t tricky enough, the equation becomes even more complex when the topic of your trade-in comes into play. If you’re like one of the millions of car buyers each year that trades-in their car at the time of purchase, you’re most likely wondering, “when do I bring up the trade-in during the negotiation process so that I get the best deal?”

Well, fortunately for you, we’re going to discuss when to bring up your trade-in (and more) today. If you’re less interested in reading about how to navigate your trade-in, you can watch the YouTube video above. If you prefer to read, then continue on below, over the next few minutes we’ll explain exactly how to approach your trade-in during the car buying process.

Without further ado, let’s dive in!

They’re two separate transactions

First and foremost you need to recognize that buying a car and trading-in a car are two separate transactions, and each should be treated as such. Negotiating a car purchase, and selling your existing vehicle are independent of each other, however dealers will diligently try to combine the two into one “deal.” Why? Because when you’re working two transactions at once there are more opportunities to generate profits (if you’re a dealer), and lose focus (if you’re the consumer).

Why should you approach the trade-in process and the negotiation of a vehicle purchase as two separate events? It’s simple, by focusing on selling your car for the greatest amount of money possible, you’ll sell your car for more, and by focusing on negotiating the best possible out-the-door price on the vehicle you’re purchasing, you’ll get the best deal possible. Attempting to combine the two simply muddies the waters and allows the dealer the opportunity to “pull a fast one” on you.

Negotiate the out-the-door price

Since your purchase and your trade-in are two separate transactions, you should turn your focus to negotiating the best possible out-the-door price. If you’re unfamiliar with the term “out-the-door price” then I highly suggest you read our guide here, or listen to this podcast episode on out-the-door price (or watch the video above). We created a 100% free out-the-door price calculator that you can access at any time as well to get an estimate for what the OTD price will be on any car you’re interested in.

To negotiate the best out-the-door price you’ll want to follow all of the best practices in the resources above, as well as what we outline in Deal School. For example, if you know how long a vehicle has been on a dealer’s lot, what the local market days supply is, and more, you’ll be able to negotiate a better out-the-door price.

Once you have agreed to terms with the dealer on the vehicle’s total price, you should then transition the conversation to your trade-in, and here’s how to approach that …

Get multiple quotes on your trade-in

My recommendation is simple: get as many competitive quotes for your trade-in as possible before engaging with the dealer. For example, you should get a quote from CarEdge, and any other applicable major used car dealers in your area before discussing your trade-in with the dealer you are going to buy the car from.

instant cash offer for car

It is important to understand that most car dealers will lowball you on their initial trade-in offer. This should come as no surprise. Dealerships are incentivized to purchase your vehicle for as little as possible so that when they sell it to another car buyer they maximize their profit. Your objective is the opposite. You want the greatest amount possible when you sell your vehicle, and the only way you’ll get that is if you get multiple quotes from a handful of dealers in your area.

Another option worth considering is also selling your car to a private party, however if you’re objective is to trade-in the vehicle (and there are financial reasons why you’d want to do this), then getting offers from private parties won’t really help your cause. The point of getting multiple quotes from other dealers is to have leverage with the dealer where you are purchasing your new vehicle, and a verbal offer from a private party isn’t much of a negotiating chip.

Once you have these quotes you can move on to the next phase of the negotiation process.

Vehicle trade-in sales tax benefit

At this point it’s clear that the trade-in of your existing vehicle, and the negotiation of the new vehicle you are purchasing are two separate events. First you should negotiate a fair out-the-door price, and then bring up competitive quotes from other dealers to purchase your car.

Now, let’s say the dealer makes a compelling offer, but they don’t match the highest offer you’ve received from another dealer. What do you do? Which offer do you take? You need to understand the sales tax benefit of trading a car in versus selling it.

The trade-in sales tax benefit is different in each state, so please double-check with your local tax codes before signing any documents, however in the state of California, the District of Columbia, Hawaii, Kentucky, Michigan, Montana, Oregon, and Virginia there is no sales-tax benefit from trading in your vehicle.

Update for 2022: In Michigan, you can reduce the taxable value of your new car by up to $8,000 and reduce your sales tax by up to $480.

Update for 2022: In Arkansas you can sell your vehicle private party and still retain a sales tax basis benefit.

This means that if you trade-in your vehicle you will not receive any sales tax credit applied to the purchase of your next vehicle. In all other states (again double-check with your local tax codes) you receive a sales tax credit applied to the price of the new vehicle you are purchasing.

For example:

  • You’re purchasing a $20,000 vehicle
  • The sales tax is 10 percent in your state
  • Your total sales tax would be $2,000
  • You’re trading in your current car for $12,000
  • The new basis for the sales tax on your purchase is decreased by $12,000
  • You now only pay $800 in sales tax on your purchase

In this scenario it would make more sense to trade-in your vehicle so long as the dealer is offering you an amount that is within $1,200 of your highest direct-sale offer.

The Origin Story of CarEdge| Episode 15

Connect with us on Facebook: https://www.facebook.com/yourautoadvocates

Access Deal School FOR FREE: https://caredge.com/deal-school

Stay connected with Ray, Zach, and CarEdge here: https://www.instagram.com/shefska/ & https://www.instagram.com/yourautoadvocate/https://www.instagram.com/rasisjaz/

Today on the Auto Insider podcast, Zach shares the origin story of CarEdge. What initially started as Ray’s Car Buying Service in 2017 has transformed into CarEdge.

Zach shares the story of how CarEdge came to be, including the unlikely beginnings, and his dad’s initial lack of interest in supporting the business.

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Sell to Carvana: My Honest Review

Updated for 2025

When it comes time to say goodbye to your current set of wheels, you have plenty of options. You could sell to Carvana, sell to CarMax, sell to a private party, or perhaps trade in at the dealership. The list goes on and on.

Recently, I went through the process of selling my 2017 Volvo S90 to Carvana, and the process was unlike any other car dealership experience I have ever had before. Selling to Carvana was simple, smooth, and financially, the right choice for me.

We documented the process on our YouTube channel (the video above), and I wanted to go in more detail about the process. Here’s what went well, how it works, and more.

How much does Carvana pay?

Carvana pays top dollar for their used cars. Why? Because they’re a HUGE publicly traded company that needs to impress investors with constant growth. The only way they can grow is to sell more cars, and the only way they can sell more cars is to buy more inventory. Because of this, Carvana is willing to pay top dollar for used cars.

Obviously Carvana (and all the other digital retailers) buy inventory from wholesale used car auctions, however, when you buy a car from the auction there are a lot of associated fees (buyers fees, transportation, and more). Because of this, companies like Carvana are happy to pay a premium to people like you and me because they don’t have to worry about all of the other costs associated with buying an auction car.

If you’re thinking “should I sell my car to Carvana to get the most amount of money,” the answer may be yes.

Before you do, make sure you compare multiple offers from the growing number of online car buyers. CarEdge has made it easy for you to get all of your offers in one spot, with no annoying phone calls, and no hassle. Check it out below!

instant cash offer for car

Why not CarMax or EchoPark?

Carvana dominated online car buying last year, but the market is quickly changing (check out the video above). There could be better offers out there, and that’s why we recommend comparing offers first.

I recommend you get offers from Carvana, EchoPark, and CarMax before deciding where to sell your car. After we posted our video on YouTube, we received comments from people that told us they received higher offers for their cars from CarMax, EchoPark, and others.

Some commenters even shared stories about selling their cars privately and getting thousands of dollars more than what Carvana offered.

What does all this mean?

If you’re looking for the highest offer possible, you’ll need to do some work to get quotes from each of the various companies (Carvana, CarMax, EchoPark, and others), as well as test the waters of selling privately. Keep in mind that selling privately requires a lot more work, and part of the benefit of selling to Carvana (or a similar company) is to avoid all that hassle and headache.

Did Carvana change the offer when you got there?

review of selling to carvana 2025

No! It’s important to understand that your Carvana offer is good for seven days and one thousand miles. I took advantage of both of those parameters when I sold my car to Carvana. I actually sold my car to Carvana five days after my offer “expired,” but this was okay because their online scheduling tool only had availability at that time. That was one of the surprising aspects of my sell to Carvana experience, they were so incredibly flexible.

You communicate via text message with your rep and they’re very accommodating to any changes you need to make. For example, I was originally scheduled to have my car picked up by Carvana in New Jersey, I then realized it would be advantageous for me to drive the car back to Maryland (to move some things), and when I asked Carvana if the offer would change if I drove back to Maryland their answer was simple, “as long as the odometer is within 1,000 miles of the photo you took, you’ll be fine.”

Not only did Carvana not change their offer, they were very accommodating to all of the changes I made during the process.

How long does the Carvana offer last?

When you sell to Carvana your offer is good for 7 days or 1,000 miles. This is the most generous policy that I am aware of. CarMax offers a 7 day, 500 mile policy, while Vroom offers a 2 day and 250 mile policy.

How long does it take to sell to Carvana?

Selling a car to Carvana takes less than an hour (and that includes the work you need to do online before you drop your car off, or they pick it up from you). Filling out the online form is quick and easy. Dropping the vehicle off at Carvana takes no more than 20 minutes. Carvana even pays for your Uber/Lyft ride back to a location of your choice.

Did Carvana inspect the car?

Sort of, but not really. I was surprised at the fact that Carvana did not inspect my car when I dropped it off. I thought they would do a slightly more in depth inspection upon my arrival, but the reality was they didn’t.

Their staff person walked around my car with an iPad and took some photos, and that was about it.

Text messages you receive from Carvana repeatedly remind you that your car needs to be in running and driving condition, specifically the battery can’t be dead, nor can the tires be in non working condition. Aside from that, there’s no real inspection or requirements for what condition the vehicle needs to be in.

How does Carvana handle negative equity?

If you owe more on your car than it is worth, you’ll be asked to get a bank check for the amount of the difference between their offer price and the amount remaining on your loan. You’ll upload an image of this check to Carvana and bring it with you when you ultimately sell the vehicle.

So there you have it. If you’re thinking about selling your car, this is what you need to know about the sell to Carvana experience. Let us know in the comments below where you prefer to sell your vehicles.

Should I sell my car to Carvana?

If you want the simplest selling experience, I would recommend you consider selling your car to either CarMax, Carvana, or EchoPark. Although Carvana pays a fair amount to sellers, they’re not the only online car buyer these days. Make sure to get online offers from top buyers before making your decision.

Looking for help buying or selling a car? Our team of Car Coaches is changing car buying for the better! From free guides and cheat sheets to premium, personalized car buying help, we’ve got options to suit your needs.

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